States facing $80B in budget deficits

WASHINGTON, Jan. 13 (UPI) -- Financially strapped U.S. states are facing projected budget shortfalls of up to $80 billion over the next six months, figures show.

While some states such as California, Florida and New Jersey have moved to reduce their spending, most are putting off spending cuts because they may not be needed if the U.S. Congress approves a large federal aid package, a USA Today survey of state financial reports indicated Tuesday.

With U.S. President-elect Barack Obama promising to "help struggling states avoid harmful budget cuts," Congress has discussed funneling $200 billion to states. Democratic governors from New York, New Jersey, Ohio, Massachusetts and Wisconsin have asked for $1 trillion over two years, while Republican South Carolina Gov. Mark Sanford says he opposes a federal bailout of state budgets.

"If Washington will wave a magic wand and bail you out, the obvious answer in politics is to avoid decisions you don't want to make," Sanford told USA Today.

But Wisconsin Gov. Jim Doyle, a Democrat, told the newspaper his state would have to slash essential services, including education, by 15 percent without federal aid, saying, "You can't tell a child in second grade to come back when the economy is better."